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I retired in May 2019, so 2020 was my first full year of retirement. When I set up my withholding amounts for 2020, I thought I would have RMDs. Then, Congress was nice to me and delayed my RMD start until I turn 72. I never bothered to adjust my withholding because Ms. Wolf insists on a refund despite my explaining to her how silly it is (I’d rather try for break even). Oh well, happy wife, happy life.

I filed our 2020 taxes electronically (using TaxCut) in March 2021 and we were due, for us, a large refund. The return was accepted within 24 hours and I expected the refund to be deposited in our checking account in about 3-4 weeks.

It’s been almost 12 weeks and no refund.

The IRS wheresmytaxrefund site, checked daily, shows the return as still being processed.

Naturally, there is no way I can find to actually contact someone from the IRS about this. Some research shows that the IRS paid $3 billion in interest charges last year for late refund payments. My understanding is that they will pay me interest from 4/15/21 (rate adjusted quarterly) because they haven’t paid me within 45 days of 4/15/21. Small consolation.

The majority of our friends received their refund within the 3-4 week window.

Just curious. Anyone else experiencing delays with IRS refunds this year?

AW
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There are millions of returns with refunds that are being held for review. Basically, any return that has a refundable credit or that requires a recalculation of the Economic Impact Payment to determine the correct amount of Recovery Rebate Credit falls into that category. Each of these returns needs to be reviewed by a human.

Ira
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.. Ms. Wolf insists on a refund despite my explaining to her how silly it ..

How does the Ms. W. now feel about the excessive withholding? Has the refund delay moderated her position on it?

Pete
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Just curious. Anyone else experiencing delays with IRS refunds this year?

I'm still waiting for my refund. I filed my return on 4/14/2021.

The 3% IRS interest rate on late refunds is better than the yield on my Vanguard short-term bond fund.

intercst
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Just curious. Anyone else experiencing delays with IRS refunds this year?

Another reason why it's best to not have a refund. They are lickety-split at cashing your check, though.

We didn't get a refund this year, but did last year. It took several months before we got it. They did pay us interest for all that time, though.
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I see the IRS rules put the late refund interest rate at "the Federal short-term interest rate plus 3%"

https://resources.evans-legal.com/?p=2591

Short-term rate is 0.12% making it 3.12%. Maybe they round-off to 3%?

intercst
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Anyone else experiencing delays with IRS refunds this year?

I'm not due a refund, but the IRS has not yet processed my 2020 return.
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How does the Ms. W. now feel about the excessive withholding? Has the refund delay moderated her position on it?

Nope. People are funny once they make up their mind about something. She thinks it’s like getting a gift, even though it’s our own money. When I told her we should be getting interest, she was thrilled.

On the other hand, when I used to do my dad’s taxes, he demanded that he owe the IRS but not enough to cause a penalty! One time he got a $200 refund and he didn’t speak to me for a month.

It’s not like we need it for anything specific. For now, it’s just going to sit in our checking account that’s paying an interest rate so small you need a microscope to see it.

AW
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Anyone else experiencing delays with IRS refunds this year?

I'm not due a refund, but the IRS has not yet processed my 2020 return.


If your return has any of the credits on it, your return is being held for human review. It doesn't matter if the bottom line is a balance due or a refund. IRS is currently reporting 18.2 million unprocessed returns in the pipeline (as of June 15).

Ira
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The Tax Strategies board is an excellent place for such a question. Some very knowledgeable and helpful folks hang out there.

https://boards.fool.com/tax-strategies-100155.aspx
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Our return was electronically filed on March 1, and is still in process. I was actually able to speak with a human yesterday, and was told they need Identity verification for us, yet no letter has been sent so now I'm trying to do that. I suspect, though, that we fell under the category that Ira mentioned as we have a credit due from the solar we installed last year.

It could be worse. DS had an issue with his 2019 taxes, and received a letter on Feb 22 saying it had all finally been processed and that he should expect a check in 4-6 weeks. That was 16 weeks ago, and still no check. We faxed the required form on May 17 making me an authorized representative so that I could do some of the legwork to check on it, and as of yesterday when I finally got through to a human because the lines are always busy, they had not yet filed it. She suggested I call back again and hope that I would get someone who has can be faxed directly and that I fax them that same form while I am on the phone - except now I can't get through, so back to that infinite loop.

DS is also stuck on his 2020 taxes where he is due a significant refund because the taxes were filed before the law was changed to make the first $10,200 of unemployment tax-free and so he is also still waiting on a refund.

Doesn't help that the IRS is still not back to fully staffed. So we are also in wait mode.
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I submitted my return electronically via TurboTax on 13 April & my refund was deposited on 21 April - 8 days. My return had itemized deductions & various investment related incomes/losses, so not "simple".
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It could be worse. DS had an issue with his 2019 taxes, and received a letter on Feb 22 saying it had all finally been processed and that he should expect a check in 4-6 weeks. That was 16 weeks ago, and still no check. We faxed the required form on May 17 making me an authorized representative so that I could do some of the legwork to check on it, and as of yesterday when I finally got through to a human because the lines are always busy, they had not yet filed it. She suggested I call back again and hope that I would get someone who has can be faxed directly and that I fax them that same form while I am on the phone - except now I can't get through, so back to that infinite loop.


Following up on my previous post as I did get through to a human yesterday. Turns out that the reason that DS' 2019 refund has not arrived yet is that it is stuck in the IRS process due to a clerical error on their part. Seems that when we sent in the additional forms, the person updated his refund amount, released it and put it on hold simultaneously, so it's been stuck there in limbo ever since. Good thing I called because they were able to free it up, and supposedly the check will be cut in the next 4-6 weeks. It is a check because it is prior year's taxes, so we are betting that his 2020 taxes, which have been confirmed as having been received and in process, will have his refund direct deposited.

So if you are still waiting, it seems that it may be a good idea to call in case there is something that needs to be addressed, some of which can be done right on the phone.
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